I will be having a friend of the family coming to watch my daughter in my house for 150/week.
She is older and I dont think she will be claiming this on taxes, which means I cant claim it on taxes for a break.
Should I request that she claim it so I can get a tax break?? How do I go about this, Im new.
2007-08-20 07:03:01 · 2 answers · asked by MommyTwice-TwiceTheLove 4 in Business & Finance ➔ Taxes ➔ Other - Taxes
If she lives in your house, then she would be a household employee and subject to withholding for social security, medicare and federal taxes.
If she doesn't live in your home, you should issue her a 1099 Misc for what you paid her during the year. You need to get her SS#.
Regardless of whether or not she claims the income, you can get the child care credit. If she doesn't give you her SS# (which she is required to by law) you can still claim the credit (although you will have to mail your return in and cannot e-file it) as long as you include her name, address on the 2441and a statement of what you did to try to obtain her SS# on a separate page.
2007-08-20 11:59:48 · answer #1 · answered by Mark S 5 · 0⤊ 0⤋
Legally, she would be a household employee, so you'd have to withhold taxes, and pay employer taxes, and give her a W-2, and report her income and remit her withholding to the IRS and maybe to your state also. And to be legal, she'd have to report it on a tax return - and you could take the dependent care credit.
2007-08-20 15:24:47 · answer #2 · answered by Judy 7 · 1⤊ 1⤋